Entrusted loan

Entrusted loan is a form of agency business in which the fund capital provided by the government departments and enterprises (“the entruster”, not including individual trust), is loaned to the target borrowers for specified use, in specified amounts, over specified maturity periods and at a specified interest rate as instructed by the entruster through NCB (China) (“the trustree”), which helps retrieve the principal sum with interest on the entruster’s behalf.

Product features

Entrusted loan is not the bank credit business. It is a fee - based intermediary business. The trustee charges only service fees, not covering the principal and interest of the loan, nor taking any form of credit risk.

The applicable objects

(1) the principal of entrusted loans shall be government agencies, enterprises and institutions approved by the industrial and commercial administrative department, or other economic organizations or natural person with full capacity for civil conduct.
(2) the borrower of the entrusted loan shall be an enterprise or other economic organization approved and registered by the administrative department of industry and commerce. The bank will not accept the entrusted loan taken natural person as a borrower.

Product value

(1) the enterprise or group can legalize interbank borrowing by entrusted loans, which can satisfy the diversified needs of borrowers' financing channels, and improve the efficiency of capital utilization.
(2) the enterprise or group can use its own funds(such as surplus funds) efficiently, reduce financial cost, and achieve the purpose of value preserving and appreciating.